Steven Mah, an analyst from TD Cowen, reiterated the Buy rating on Ginkgo Bioworks Holdings (DNA – Research Report). The associated price target is $7.00.
Steven Mah has given his Buy rating to Ginkgo Bioworks Holdings due to a variety of factors. Despite the Q3 revenue of $55M beating estimates, DNA lowered its FY23 guidance to 80-85 new program adds which was previously estimated at 100. This, alongside the tightening of the Cell Engineering revenue guide to $145-150M due to slow growth in new partner adds, influenced Mah’s decision. Despite these changes, Mah maintains a positive outlook on DNA’s long-term prospects.
The company’s Q3 revenue was below Mah’s estimate but above the Street’s, with a year-on-year decrease of 17% mainly due to the discontinuation of K-12 testing in the Biosecurity segment. Additionally, the slower than expected deal closings and macro issues impacting new program additions contributed to the decline in Cell Engineering revenues. However, the company’s continued relationship with CDC and DoD, promising integration of AI into the Foundry and Codebase workflow, and a healthy cash reserve at the quarter-end provide a multi-year runway and flexibility for strategic objectives, further solidifying Mah’s Buy rating.
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Ginkgo Bioworks Holdings (DNA) Company Description:
Ginkgo Bioworks Holdings (NYSE:DNA) is a biotechnology company that offers a platform for cell programming that enables the biological production of various products across the food, pharmaceutical, and fragrance industry. Its platform provides equipment, software, robotic automation, and tools to support genetic engineering, analytics, and fermentation.
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